Partners cut ribbon at Yatela mine

With production already in full swing at the Yatela gold mine in western Mali, all that remained to do was open the mine officially.

Partners AngloGold (AU-N) and Iamgold (IMG-T) did that on Sept. 8, cutting the ribbon on the mine in a ceremony with government officials from Mali and AngloGold’s domicile of South Africa.

The Malian government, which owns a 20% interest in the mine, was represented by Minister of Mines Aboubacary Coulibaly, and the South African government sent Susan Shabangu, a senior civil servant in its Mines Ministry, to take part in the ceremonies.

Yatela, immediately north of the two companies’ Sadiola Hill mine, is an open-pit operation with gold recovered in a heap-leach plant. It poured its first bar on May 9 and began commercial production on July 4. To the end of June 2000, it had produced just over 21,000 oz. from slightly less than half a million tonnes of ore.

Yatela has reserves of 13.4 million tonnes at a grade of 3.7 grams gold per tonne. There are measured and indicated resources of 24.6 million tonnes grading 2.7 grams and inferred resources of 12.3 million tonnes with 1 gram gold per tonne. AngloGold expects to produce 136,000 oz. gold in 2001 and 1.4 million oz. over the mine’s five-and-a-half-year life.

In an average year, Yatela will stack 2.5 million tonnes on the leach pads.

A smaller inferred resource at the nearby Alamoutala deposit is estimated at 2.0 million tonnes running 2.4 grams; if development goes ahead there, it would add another year of life to the Yatela operation.

Total cash costs (including royalties) in 2001 are expected to be US$185 per oz., and they are expected to average US$175 over the mine’s life.

The partners have previously estimated the capital cost of the mine at US$76 million, of which AngloGold is putting up 65% and Iamgold the rest. About US$34 million is budgeted for 2001. The government’s interest is carried.